SaskTel says AT&T Canada Inc.’s petition that the CRTC further reduce the price of incumbent network access should be denied. The telco last month filed its response with the Commission, saying AT&T Canada’s proposal “would result in a direct subsidy” of $15 million, which translates into a $3 increase per residential line that SaskTel serves. AT&T Canada, which relies on incumbent network access to provide local service, wants the Commission to lower the prices competitors pay for that access. Incumbents like SaskTel argue prices are low enough to incite competition.
Nortel, Extreme bury hatchet
Nortel Networks Ltd., the Brampton, Ont.-based telecom gear maker, has settled its dispute with Extreme Networks Inc., a switch builder from Santa Clara, Calif. The firms decided on a patent cross license agreement rather than a battle in court. Nortel says details of the settlement remain confidential and its suit against Extreme has been dismissed. Nortel in 2001 went after Extreme for numerous patent infringements and $150 million in damages, according to reports. Extreme counter-sued, claiming Nortel’s suit was unwarranted.
Merge ahead?
According to a September press release from Group Telecom Inc., a Toronto-based CLEC, the company “has…obtained approval for a merger and acquisition process.” According the firm’s spokesman Michael Minnes, this is not to say GT will be sold or become part of another carrier, but that the company is keeping all its options open. GT filed for protection from creditors earlier this year. A court recently extended that protection through to Nov. 12. GT also said it would defer issuance of its Q3 2002 financial results.